Did you know that your business can get the great benefits of outsourcing if you start outsourcing now? Today, IT outsourcing companies have made outsourcing an effective approach to managing business activities. In this article, let’s find out the top benefits that outsourcing brings to businesses.
I. What is Outsourcing?
Outsourcing is a business practice in which a company hires a third party to perform tasks, or provide services to the company on a contract basis.
In IT, outsourcing is the use of external service providers to efficiently provide some or all of the IT features required by a company.
Example: A customer hires BAP Software as a third party to develop a mobile application for their business process.
II. The trend of IT outsourcing for businesses today
IT outsourcing has become a trend for businesses today. A business can use one provider for all of their IT activities or multiple service partners to provide different elements. A lot of technology was previously only available to large enterprises, but now it is accessible to small and medium businesses.
For example, cloud computing technology was previously only used by large enterprises. But now, the majority of companies regardless of size are already using the cloud as business software.
In particular, the demand for IT outsourcing services has increased a lot after the Covid-19 pandemic with the form of remote working. IT outsourcing has become a great and popular tool for businesses.
Because outsourcing will help businesses access innovative technologies that are not available internally; products and services are deployed faster to help increase competitive advantages in the market; businesses can shift resources to the most important business areas.
III. The benefits of outsourcing bring to businesses
1. Cost savings
One of the notable benefits of outsourcing is cost savings. Outsourcing makes it easier for businesses to access the best services and talent at a lower cost than hiring employees directly. Because businesses do not have to waste costs related to hiring employees to develop internal software, train employees.
In Latin America, hourly rates for outsourcing IT software development range from about $35 to $70 USD; in Eastern Europe, ranging from $30 to $65; in Asia and Africa, ranging from $20 to $45.
2. Time savings
When outsourcing IT jobs, businesses can focus more on their expertise. They don’t have to spend time researching and doing unprofessional things. Those tasks will be quickly completed by the third party.
3. Access to talented human resources
Usually, businesses will use a lot of resources and time to find talent. But with outsourcing, you just need to identify a competent outsourced service provider to link your business with the best talent in the IT service sector.
In particular, you can access to talented human resources around the world. Especially in the top outsourcing countries and have highly appreciated human resources such as Ukraine, Russia, India and Vietnam,…
4. Stable growth
Outsourcing is considered a more suitable solution than enterprises building their own internal team. Because they can end the outsourcing contract without having to lay off the employee. This is a good way to ensure the business sustains steady growth. At the same time, keep the core staff focused on internal tasks.
5. Increase efficiency
The outsourcing company has expertise in the IT industry, usually professional engineers so the quality of work is often higher than the in-house team of the enterprise.
Finally, according to research by Deloitte, the top common reasons businesses outsource are:
- 65% of companies outsource to focus on business goals
- 63% to minimize costs
- 53% to solve capacity issues
- 28% to improve service quality
- 26% to get help from experts
- 18% to manage the business environment
In a nutshell, outsourcing is hiring any third party, be it domestic or international, organization or individual outside the company to perform some IT activities for the business. The company providing outsourcing services will support consulting, designing, testing, implementing and developing the project. With the benefits that outsourcing brings, we are sure that this is an accurate and effective solution for your business.
If there are any problems, questions, difficulties you would like to be answered and further advised. Please contact us, BAP is always ready to assist you.